{"id":30403,"date":"2021-07-01T13:54:49","date_gmt":"2021-07-01T13:54:49","guid":{"rendered":"http:\/\/onlineclassesguru.com\/?p=30403"},"modified":"2021-07-01T13:54:49","modified_gmt":"2021-07-01T13:54:49","slug":"the-treasury-department-report-for-modernizing-the-financial-system-made-several-recommendations-for-safer-and-more-competitive-banks-fdicia-of-1991-was-born-from-the-reco-2","status":"publish","type":"post","link":"https:\/\/onlineclassesguru.com\/index.php\/2021\/07\/01\/the-treasury-department-report-for-modernizing-the-financial-system-made-several-recommendations-for-safer-and-more-competitive-banks-fdicia-of-1991-was-born-from-the-reco-2\/","title":{"rendered":"The Treasury Department report for modernizing the financial system made several                      recommendations for safer and more competitive banks. FDICIA of 1991 was born from the        recommendations. Give a brief description of  FDICIA and discuss the meaning of defacto           insure?"},"content":{"rendered":"<style type=\"text\/css\"><\/style><p>. The Treasury Department report for modernizing the financial system made several\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0recommendations for safer and more competitive banks. FDICIA of 1991 was born from the\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 recommendations. Give a brief description of\u00a0 FDICIA and discuss the meaning of defacto\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 insure? 20 pts.<\/p>\n<p>&nbsp;<\/p>\n<p>2.\u00a0 Calculate the risk-adjusted asset base for a bank with:<\/p>\n<p>a. Cash of $20 million, 0%<\/p>\n<p>b. Gen. Obligation municipal security of $100 million, 20%<\/p>\n<p>c. Singe family home mortgages of $500 million, 50%<\/p>\n<p>d. Commercial loans of $300 million, 100%.<\/p>\n<p>4a. If the bank has no off-balance sheet activity what is the bank=s minimum required level of\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Tier1 and Tier 2 capital? 10 pts.<\/p>\n<p>4b. If the bank has Tier 1 capital of $25 million and Tier 2 capital of $15 million does the\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 bank comply with its capital requirement. 10 pts.<\/p>\n<p>4c. Also, explain how the addition of off-balance sheet activities might impact the capital\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 requirement of the bank. 5 pts.<\/p>\n<p>&nbsp;<\/p>\n<p>3.\u00a0 What is meant by prompt corrective action and how is it implemented in the current<\/p>\n<p>regulatory environment.\u00a0 What role does capital play in prompt corrective action?<\/p>\n<p>How do we categorize capital under this approach and how do we know the wire has been<\/p>\n<p>\u201ctripped\u201d.\u00a0 Also want is meant by CAMEL.\u00a0 Please be very specific.<\/p>\n<p>&nbsp;<\/p>\n<p>4.\u00a0 What are the three pillars of BASEL 2? Under Basel 2 what external agency monitors\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 the credit risk of large international banks?\u00a0 Give an example of the use of market \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0discipline under\u00a0 Basel 2 and explain the difference between market discipline from the bond \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0and equity markets.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>5.\u00a0 Give a brief discussion of the Graham Leach Bliley Act.\u00a0 In your answer discuss the\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 difference between a bank holding company (BHC) and a financial services holding\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0company (FHC). In your answer describe the requirements to be a FHC.<\/p>\n<p>Also, what is the Glass-Steagall Act and how did Graham Leach Bliley Act impact it?<\/p>\n<p>&nbsp;<\/p>\n<p>6. \u00a0Give a brief description of the Dodd Frank Wall Street Reform and Consumer Protection Act.<\/p>\n<p>Please name all the voting regulatory agencies involved and what new role the FDIC plays in<\/p>\n<p>the resolution of systemic institutions. In your answer discuss the concept of the living will\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 and the bridge institution that may be necessary to resolve too big or complex institutions to \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0fail.<\/p>\n<p>&nbsp;<\/p>\n<p>7. \u00a0What is the difference in the core tier 1 capital requirements of Basel 3 to Basel 2? Also under\u00a0\u00a0\u00a0\u00a0\u00a0 Basel 3 what is the designated capital conservation buffer for capital in 2019? Also give the\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 definition of the liquidity coverage ratio and the net stable funding ratio.<\/p>\n<p>&nbsp;<\/p>\n<p>8.\u00a0 What is contingent capital and how can it be beneficial to help solve the debt over hang\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 problem faced by banks during a financial crisis. ?<\/p>\n<p>&nbsp;<\/p>\n<p>9\u00a0\u00a0\u00a0 What is meant by corporate separateness and why is it important? 10 pts.<\/p>\n<p>What are the implications for market discipline and capital rationing if corporate\u00a0\u00a0\u00a0\u00a0\u00a0 separateness is impaired for a bank holding company ? \u00a0Also, in your answer illustrate corporate separateness by a diagram.<\/p>\n<p>&nbsp;<\/p>\n<p>10.\u00a0 What is the \u201cbasic definition\u201d of traditional banking and how does the Volcker Rule try to protect banking deposits from systemic risk?<\/p>\n<p><center><a href=\"http:\/\/onlineclassesguru.com\/orders\/ordernow\"><img decoding=\"async\" src=\"https:\/\/encrypted-tbn0.gstatic.com\/images?q=tbn:ANd9GcTyj99p60XCLyLk1htB7-1neRt8-2QdnenNlQ&usqp=CAU\"target=\"_http:\/\/onlineclassesguru.com\/orders\/ordernow\"\/><\/center><p>","protected":false},"excerpt":{"rendered":"<p>. The Treasury Department report for modernizing the financial system made several\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0recommendations for safer and more competitive banks. FDICIA of 1991 was born from the\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 recommendations. Give a brief description of\u00a0 FDICIA and discuss the meaning of defacto\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 insure? 20 pts. &nbsp; 2.\u00a0 Calculate the risk-adjusted asset base for a bank with: a. Cash&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-30403","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Treasury Department report for modernizing the financial system made several           recommendations for safer and more competitive banks. FDICIA of 1991 was born from the    recommendations. Give a brief description of FDICIA and discuss the meaning of defacto      insure? - onlineclassesguru<\/title>\n<meta name=\"description\" content=\"The Treasury Department report for modernizing the financial system made several recommendations for safer and more competitive banks. FDICIA of 1991 was born from the recommendations. 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